When companies merge or acquire, stakeholders usually expect that the whole will be greater than the sum of its parts. Unfortunately, the facts tell a different story. Study after study puts the failure rate of mergers and acquisitions between 70% and 90%. One plus one does not equal three; too often it moves shareholder returnsRead more
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When researchers survey business leaders on their opinions about why an M&A initiative has failed, often they flag implementation as the primary cause of problems. Blaming implementation rather than looking at the acquisition strategy, however, looks at effect – not cause. The reasons for failure may show up during the implementation stage, and people willRead more
In response to a question about his strategy for an upcoming fight, former heavyweight champion Mike Tyson responded, “Everybody has a plan until they get punched in the mouth.” Tyson got the first part of this wrong: most individuals and organizations don’t have a plan. But he’s right about the second part: even those whoRead more
Several years ago, I helped the president of a manufacturing company run a strategy initiative. When I walked into the room on the first day, twenty-six eager faces greeted me. Well-intended though he was, my client had inadvertently turned our strategy session into an execution-a session that promised to kill the strategy before it hadRead more
Long before the ink dries on the legal agreement to acquire a company or to merge two entities, the integration strategy should be clear, but in the heat of finalizing the deal, integration is often left until the last minute or ignored completely. Rather than roll the dice, consider the following framework, the Five EssentialRead more
